MAYOR BLOOMBERG AND MICROSOFT CEO STEVE BALLMER ANNOUNCE FIRST OF ITS KIND PARTNERSHIP TO KEEP NEW YORK CITY AT THE CUTTING EDGE OF TECHNOLOGICAL INNOVATION WHILE SAVING TAXPAYER DOLLARS

Agreement will Consolidate Dozens of Agency License Agreements into One, Provide New State-of-the-Art Technology Resources to City Employees and Save the City $50 Million over Next Five Years

Part of "SimpliCity" Initiative to Make City Government More Efficient, Electronic and Effective

Mayor Michael R. Bloomberg, Deputy Mayor for Operations
Stephen Goldsmith, Department of Information Technology and Telecommunications
(DoITT) Commissioner Carole Post and Microsoft CEO
Steve Ballmer today announced a wide-ranging information technology agreement
that will consolidate the City's dozens of individual license agreements into a
single one and will provide more than 100,000 City employees with
state-of-the-art computing power. Microsoft will provide access to its
Internet-based computing services - a growing trend called cloud computing -
which will foster collaboration among City employees and allow agencies to share
their technology developments. The agreement will also enable the City to
maximize cost savings by transitioning from a one-size-fits-all approach to more
tailored offerings to meet the needs of different types of users. In total, the
agreement will save New York City $50 million over the next five years. The
announcement took place in the Blue Room of City Hall.

"To deliver services efficiently and function at the
highest level, City employees need the same technological resources that top
private sector businesses provide to their employees," said Mayor Bloomberg.
"Through our partnership with Microsoft, we've found ways to offer our employees
Microsoft's newest, state-of-the-art computing tools while reducing costs to
taxpayers. By capitalizing on the City's buying power, consolidating dozens of
separate City agency license agreements into a single one, and paying for
software based on use, we'll save $50 million over the next five years."

"Microsoft is excited to partner with Mayor Bloomberg
and the City of New York to deliver the best experience and satisfaction to the
City's citizens and workers," said Microsoft CEO Steve Ballmer. "With
Microsoft's latest cloud-based productivity and collaboration tools, New York
City employees will benefit from having better access to information, improved
collaboration and information sharing among city agencies. Additionally,
this comprehensive partnership provides the latest in operating system, server
and development tools laying a foundation for greater innovation and
infrastructure modernization."

The consolidated partnership with Microsoft is part of a
broader effort - called SimpliCity - to make City government more
efficient, more electronic, and more effective. Spearheaded by Deputy Mayor
Goldsmith, the SimpliCity initiative is designed to use technology and
data to more efficiently manage operations, reduce costs and streamline
interactions between businesses and City government.

"This innovative agreement with Microsoft showcases how
technology is transforming - and improving - how we deliver services to New
Yorkers. As part of our broader efforts around SimpliCity, it
represents a big step towards more efficient, effective City government," said
Deputy Mayor Goldsmith.

"Providing 30,000 City employees with Internet-based
cloud computing services will drive more efficiency in City operations and
improve delivery of services to New Yorkers." said Commissioner Post. "With the
foundation provided by the Executive Order the Mayor signed today, DoITT is
looking forward to working with its agency partners citywide, and IT industry
leaders like Microsoft, to develop and implement even more creative productivity
tools for City workers."

Prior to the agreement, New York City's various agencies
purchased software individually, yielding more than 40 separate license
agreements and many more individual maintenance and support packages. This
partnership will give the City the ability to manage different employee profiles
and maximize efficiencies. The agreement establishes three levels of City
software users: those who need only occasional access to specific tools, those
who regularly use Microsoft's basic programs, and "power users," who require the
full complement of Microsoft's programs and services.

The move to Internet-based computing - or cloud
computing - will mean increased productivity for and collaboration among City
software programmers and other employees. The services will allow programmers to
create new software applications their agencies need while reducing the need to
buy new hardware. Once applications are created, other agencies that have
similar needs will be able to use part or all of them, saving time and
resources. Other City employees - 30,000 of them as a first wave under this
consolidated agreement - will have an opportunity to use Microsoft's cloud
computing productivity services to work on documents simultaneously with
colleagues, participate in online conferencing and use other features. And
unlike traditional software products, the programs used in cloud computing are
updated instantly when newer versions are released, so employees will always
have access to the latest technology.

The inclusion of Internet-based computing complements
and extends the City's own network of servers and provides additional
opportunities to save money, space, energy, and maintenance time. This will help
DoITT achieve the goals of its Citywide IT Infrastructure Services program
(CITISERV), which will consolidate the City's more than 50 separate agency data
centers into a centrally-managed state-of-the-art facility.

The consolidated agreement was made possible when the
Mayor today signed Executive Order 140, which authorizes DoITT to centralize the
coordination of information technology planning and policy for the City.

Mayor Bloomberg and Steve Ballmer also announced that
New York City will host Microsoft's Imagine Cup 2011 Worldwide Finals in July
2011. The global competition challenges high school and university students to
help solve the world's toughest problems through technology. Microsoft and
partnering organizations will recognize students for their achievements, present
finalists with prizes and expose participants to ways they might turn their
ideas into reality.

Microsoft's partnership with New York City and its
decision to host its next Imagine Cup in New York underscore Microsoft's history
of partnering with the City to improve the lives of New Yorkers. This includes
programs such as the Microsoft-sponsored Virtual Senior Center, developed by the
New York City Department for the Aging, DoITT, and Selfhelp Community Services
links homebound seniors with computer, video and Internet technology that
reduces social isolation and helps them access community services, in addition
to Microsoft's providing their Internet safety video "Clicking with Caution" to
200,000 New York City public school students at no cost.